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Hello everyone, today XM Foreign Exchange will bring you "【XM Foreign Exchange Market stofoco.comment】: Collection of positive and negative news that affects the foreign exchange market". Hope it will be helpful to you! The original content is as follows:
On August 1, 2025, foreign exchange market investors need to pay close attention to many news, which will affect the market trend and provide an important reference for investment decisions.
Since this year, China's foreign exchange market transactions have been rational and orderly, and cross-border capital flows through major channels are stable. From January to March 2025, banks had accumulated RMB 3796.5 billion in foreign exchange settlements and RMB 4210 billion in foreign exchange sales. Although the overall foreign exchange settlement and sales showed a certain deficit in the first quarter, the deficit in March was only US$2 billion, a small amount. At the same time, the demand for foreign exchange purchases by enterprises and other entities fell. The exchange rate for purchasing foreign exchange in March was 64.4%, down nearly 11 percentage points from the January high. The market's willingness to settle foreign exchange was generally stable, and the March exchange rate was basically the same as that in January. This shows that China's foreign exchange market is tending to balance and stability is increasing.
The subsequent actions of the State Administration of Foreign Exchange also inject a booster into the market. Recently, the "Notice on Deepening the Reform of Foreign Exchange Management in Cross-border Investment and Financing (Draft for stofoco.comments)" was issued, involving 9 specific policies including deepening cross-border investment, financing foreign exchange management reform, and optimizing the facilitation of capital account income payments. This includes the "Science and Reunion" policy that facilitates scientific research institutions to receive overseas funds, allowing domestic scientific research institutions to receive overseas remittance funds and use them after the bank handles basic stofoco.comrmation registration, which will further open up channels for overseas remittance; it will also uniformly increase the foreign debt quota for the pilot cross-border financing facilitation of science and technology enterprises, and increase the quota for some high-quality enterprises to US$20 million. These policies not only promote cross-border capital flows, but also serve the real economy, especially science and technology enterprises.The development provides strong support, which is expected to enhance the market's confidence in RMB assets and promote the performance of RMB in the foreign exchange market.
Judging from the real-time data on August 1, some currency pairs showed positive exchange rate trends. For example, the Malaysian ringgit rose by 0.6194% against the South African rand, while the Maldives Rafia rose by 0.3401% against the Canadian dollar. Panama Bapoa appreciated 0.0792% against the RMB, and the Macau dollar also increased by 0.0802% against the RMB. The Swiss franc has performed strongly among many currency pairs, with appreciation against Laos Kip, Lesotho Loti, Moldovan Leu and other currencies. The strengthening of this local currency pair reflects the positive impact of economic or policy factors in specific regions, and for investors of relevant currencies, it is a signal of entry or holding profit.
Trump's trade policies have triggered uncertainty in the global economy, and some national currencies have been impacted. Taking Japan as an example, data disclosed on June 18 showed that under the impact of US tariffs, Japan's exports in May fell by 1.7% year-on-year, the first decline in eight months. This data has exacerbated concerns about the Japanese economy falling into a technical recession. The Japanese Ministry of Finance announced that in May, Japan's exports to the United States fell by 11.1% year-on-year, and exports to China fell by 8.8% year-on-year. The decline in exports has put pressure on the yen in the foreign exchange market, and the market's concerns about Japan's economic outlook have increased, affecting the yen's exchange rate performance.
Although the current overall operation of the foreign exchange market is stable, the potential risks cannot be ignored. On April 7, due to the "reciprocal tariffs" imposed by the Trump administration in the United States, the foreign exchange market experienced violent fluctuations, the South Korean won and the US dollar closed down, and the Indonesian rupiah against the US dollar fell to its lowest level in history. This huge market shock caused by trade policies has sounded a wake-up call for investors. Once trade frictions intensify or other geopolitical risks break out, the foreign exchange market may fall into turmoil again, and large fluctuations in the exchange rate will increase investors' trading risks, especially for investors in leveraged trading, which may lead to serious losses.
Overall, on August 1, 2025, the long and short news in the foreign exchange market were intertwined. During the transaction process, investors need to pay close attention to the release of economic data, policy trends and changes in geopolitical situations in various countries, stofoco.comprehensively analyze favorable and negative factors, and carefully formulate investment strategies to cope with the stofoco.complex and changeable foreign exchange market.
The above content is all about "【XM Foreign Exchange Market Review】: Collection of positive and negative news that affects the foreign exchange market". It was carefully stofoco.compiled and edited by the XM Foreign Exchange editor. I hope it will be helpful to your trading! Thanks for the support!
Due to the author's limited ability and time constraints, some content in the article still needs to be discussed and studied in depth. Therefore, in the future, the author will conduct extended research and discussion on the following issues:p>